[Orlando] This year’s Abbey Carpet & Floor Convention, held here this month, brought its members together to view new exclusive product lines, targeted programs and initiatives, and discuss hot topics like a store’s Internet presence and maintaining healthy margins.

The group, reported chairman and CEO Phil Gutierrez, is experiencing steady sales growth. “For the last five months we have heard from you (members) increases averaging 9 percent month after month,” Gutierrez said.

Steve Silverman, president and COO, added, “As we look back and can more clearly understand the difficulties we faced, we felt an appropriate theme for this year’s convention would be Building on a Strong Foundation. For most, succeeding through these challenging times has made businesses more efficient than before the recession began. As a result, we are operating from a stronger foundation from which to build during times of prosperity.”

Silverman spoke with pride about the resilience of his members. He told FCW that Abbey dealers “have weathered the most difficult years in our industry’s history. With the difficulties that came with it, the survivors have pared down staff and done what was necessary to stay in business.”

He said that, for the first time, there is data to support an improved economy — housing market, low unemployment rate, improved resale market, increase in home prices, increase in consumer confidence and the start of increased consumer spending.

“How do we best take advantage of the opportunity recognizing that our competitors are faced with the same opportunity?” asked Silverman.

The answer, he said, is in the programs being offered to members. “Our product brands allow members to price floors without fear of comparison shopping. We have a consumer website that is their website and can and should be customized with as much information as they would like,” explained Silverman. “Our message is to take advantage of the many programs we offer. We have a broader view of what the consumer tastes are.”

Products and programs

A wide variety of exclusive product offerings allow each Abbey store to maintain its own identity and best serve its specific market.

“We selected these programs and they are the best programs in broadloom and hard surface. We have negotiated the price of the product and price of displays,” Silverman said. “We are not taking away the entrepreneurship of our owner.”

Dave Hardy, executive vice president of merchandising and member services, noted, “Business is improving and the consumer is back in the market.”

In soft surface, Abbey offers an assortment that includes both exclusive carpet brands and exclusive fiber brands such as Softique and Infinity nylon. “The success of Softique, Infinity nylon, TruSoft and Silk is undeniable. We will expand these platforms,” explained Hardy.

Introductions came from such leading vendors as Shaw, Dixie, Invista, Milliken, Mohawk, Beaulieu and Tuftex in key brands like American Showcase and Alexander Smith.

Noted Silverman, “Dixie and their three divisions, Dixie Home, Masland and Fabrica, are introducing possibly the best products from a styling and color standpoint we have seen.”

There was an equal amount of excitement on the hard surface side with hardwood coming from such suppliers as Mullican, Armstrong, CFS, Anderson, Max Windsor, Shaw and Mohawk, all private labeled. New laminate programs were also added along with LVT from makers like Karndean and USFloors. A Marazzi tile program also debuted here.

New suppliers for 2013 include Citco Industries, Home Legend, Feizy Rugs, American Rug Craftsmen by Mohawk and Karastan.

Problem solving

First day workshops offered information from website design to managing your online reputation. The forum allowed members to share best practices, challenges and solutions.

When it comes to running promotions, retailer Ted Gregerson of Abbey Carpet & Floor in Anniston, Ala. said that preparation is the key to success. “A lot of us don’t prepare for a sales event,” he said. “If you mark the floor at 55 percent to 60 percent, you can have whatever sale you want. A lot of times, we are our own worst enemy — we are afraid to raise prices.”

Sam O’Krent, O’Krent’s Abbey Flooring Center, San Antonio, Texas, told attendees, “We have to understand the consumer does not understand floor covering. Talk about your own store — how long you’ve been in business. Get in their home. We say, ‘We will be within 5 percent to 10 percent of the next closest price and I’ll tell you why we are worth it.’ ”

Abbey offers its members a full service advertising department led by Barbara Wells and Bill Wilson. “Differentiate yourself from the big box. Create a sense of fashion and style in your showroom and stay in touch with the consumer,” emphasized Wells.

Also on the agenda was managing a dealers’ online reputation through Angie’s List and Yelp. During convention, the group offered members the service of signing them up for both listings to help get them started.

“Seventy-eight percent of consumers say they would consult reviews or consumer ratings before making a purchase,” noted Wilson.

The 3 million Angie’s List members, reported Wells, are between the ages of 35 and 64; married; homeowner; college educated; annual household income of at least $100,000; and, they spent $1.2 billion on flooring in 2012. “These members are right in our wheel house,” she noted.

Similarly, Yelp receives 87 million searches per month with 31 percent of the Yelp audience having remodeled in 2012.

Pillars of a stronger foundation

Invista’s Pami Bhullar, director of retail development, Invista/Stainmaster Carpet, offered additional insight. “Consumer behavior is changing rapidly,” he said noting that Invista has done a tremendous amount of consumer research. “Consumers control the marketplace, the retail situation, so we have to adapt. 2013 seems to be the turning point,” he said.

He said to concentrate on “three pillars of a strong foundation” which included being an ambassador, “If you don’t have a story to tell, all you have is price negotiation.” People, products and promotions comprise the second area of concentration followed by systems, sales and success. “You can’t keep doing the same thing and expect different results,” he advised.

Some key points Bhullar made: consumers use more than 12 sources of information to make a decision; they dislike detailed signage and selling tools; 75 percent of the buy is emotional; almost 70 percent of consumers visit home improvement stores to gather information, however, two-thirds buy in specialty retail; and, 66 percent of consumers who get a recommendation from an RSA follow it.

Bhullar noted too that 55 percent of consumers are looking for durability and easy-to-clean products, 25 percent looking for style and look and 20 percent a low price or value.